In 2025, the global tungsten market has witnessed an unprecedented price surge that sent ripples through downstream industries. Tungsten powder, the core raw material for cemented carbide cutting tools—known as the "teeth" of machine tools—has soared by over 100% year-on-year, reaching 635 yuan per gram. This skyrocketing cost, coupled with frequent price adjustments, has pushed the machine tool cutting tool industry into an existential predicament. However, amid the pressure, technological innovation, resource recycling, and industrial upgrading have emerged as critical pathways to break the deadlock.
To understand the industry's predicament, it is essential to dissect the root causes of the tungsten powder price hike, which stems from a severe global supply-demand imbalance. On the supply side, tungsten, as a strategic non-renewable resource, faces stringent regulatory controls worldwide. China, the world's largest tungsten reserve country, reduced its 2025 tungsten ore mining quota by 6.45% to 58,000 tons, with major producing regions cutting quotas by 8%-10%. Compounding the issue is the declining ore grade—from 0.42% in 2004 to 0.28% in 2024—requiring 300-400 tons of raw ore to produce one ton of tungsten concentrate, driving mining costs above 100,000 yuan per ton. High environmental supervision has shut down small and medium-sized mines, leaving domestic mine operating rates below 35% and spot inventories sufficient for only 15 days. On the demand side, booming emerging industries such as photovoltaic, aerospace, and automotive have fueled surging tungsten consumption, with China's total tungsten consumption growing by 2.1% in the first half of 2025 alone. This supply-demand mismatch has made high tungsten prices a "new normal," forcing cutting tool enterprises to raise prices repeatedly—Shanghai Tool Factory and Chengdu Xinchengliang have both announced price hikes of over 10% since October 2025.
Faced with this crisis, technological upgrading toward high-endization has become the primary breakthrough for enterprises. Professor Zhang Li from the Powder Metallurgy Research Institute of Central South University emphasizes that mid-to-low-end products can no longer sustain enterprises, and technological progress is the core support for development. One key direction is optimizing product design to reduce tungsten usage while maintaining performance. German researchers at the Rheinland-Palatinate University of Technology (RPTU) have pioneered 3D printing technology to manufacture cutting tools, using tungsten only at the functional cutting tip and steel for the shank—a practice that significantly cuts tungsten consumption. Similarly, advanced welding technology has enabled domestic enterprises to use cemented carbide only for the cutting contact part and steel for the support structure, achieving the goal of "using good steel where it is most needed".
Another technological focus lies in improving material performance and processing precision. Coating technology has emerged as a cost-effective solution: applying titanium nitride or titanium carbide coatings to tool surfaces enhances wear resistance and heat resistance, reducing tool wear and extending service life without increasing tungsten content. Meanwhile, intelligent transformation of tungsten powder production has become a game-changer for cost control. China Minmetals' Zhuyou Company invested over 80 million yuan in an intelligent workshop for tungsten carbide powder, where automated processes reduced unit processing costs by more than 30% and doubled production capacity. The standardized intelligent equipment also narrowed the fluctuation range of product indicators by half, ensuring consistent quality comparable to imported materials. This not only addresses the reliance on expensive imported nano-tungsten carbide powder—which costs twice as much as domestic equivalents—but also shortens delivery times to respond quickly to market demands.
Beyond technological innovation, establishing a closed-loop resource recycling system offers a fundamental solution to the resource scarcity dilemma. Currently, China's tungsten recycling rate remains low, and recycled materials are mistakenly labeled as "low-end" due to inadequate classification of waste materials. In contrast, international advanced practices focus on precise classification and high-value recycling. For example, RPTU's research project aims to build a closed material cycle for tungsten, ensuring that waste tools are fully recycled and reused in high-end production. Domestic enterprises are also exploring breakthroughs: by developing efficient separation and purification technologies, they can extract high-purity tungsten from waste cemented carbide tools, reducing dependence on primary tungsten ore and lowering raw material costs by 40% or more.
Additionally, optimizing supply chain management helps enterprises mitigate price volatility risks. Leading enterprises such as Seco Tools have adopted flexible pricing mechanisms and long-term strategic cooperation with upstream suppliers to stabilize raw material supply. They also assist customers in improving production efficiency through new product applications, offsetting the impact of tool price hikes and achieving win-win outcomes. For small and medium-sized enterprises, participating in industrial alliances to collectively purchase raw materials and share technological research and development costs has become an effective way to enhance resilience.
The surging price of tungsten powder is both a crisis and an opportunity for the machine tool cutting tool industry. It has exposed the industry's over-reliance on primary resources and mid-to-low-end production models while accelerating the pace of technological iteration and industrial restructuring. As Professor Zhang Li points out, the future competitiveness of enterprises will depend on their technological innovation capabilities and resource recycling efficiency. By adhering to high-end development, promoting resource circulation, and optimizing supply chain collaboration, the industry can break through the resource bottleneck and move toward a more sustainable and high-value-added development path.
